5 Legal Issues Churches Can’t Afford to Ignore

One of the “fun” parts of working with churches nationwide is that you get a front-row seat to what’s coming next.

One of the less fun parts is realizing that most churches only talk about legal issues when something is already on fire.

A disruption during a worship service.
An allegation of abuse.
A staff member who needs to be exited quickly.
A board conflict that suddenly turns personal.
A data or AI issue no one saw coming.

Almost never does a church leader wake up and say, “Let’s ignore governance” or “Let’s be careless with safety.” These aren’t issues of bad intent.

They’re usually issues of speed.

Churches move fast. Vision moves fast. Ministry expands. Culture shifts. Technology accelerates. And governance, policy, and guardrails quietly drift behind.

Healthy churches don’t panic about legal issues.
But they also don’t ignore them.

Holly sat down with Keith Richardson, a partner and attorney with Michael Best’s Faith-Based Practice, who works with dozens of churches around the country, to hear the top legal issues facing churches right now. Here’s what he shared.

1. Child Protection and Abuse Reporting

This remains the most important area of legal and moral stewardship.

And it’s not just about what happens inside your building.

In many cases, churches aren’t responding to internal misconduct; they’re responding to a child who shares something that happened somewhere else. At home. At school. In a friend group.

The question becomes:

• Who does the volunteer report to?

• What is mandatory under state law?

• What documentation is required?

• What communication is appropriate?

If your reporting structure is unclear, confusion fills the gap. And confusion is not a strategy.

Every church should have:

• Clear child protection policies

• Clear volunteer training

• Clear reporting channels

• Clear “no one alone” protocols

• Clear digital communication guardrails for staff and volunteers

Not because you assume the worst, but because you are stewarding trust.

2. Freedom of Religion and the Right to Worship

Recent events have reminded churches of something foundational:

The First Amendment matters.

Churches have a protected right to gather and worship without disruption. That right is not secondary. It is constitutional.

At the same time, churches are asking practical questions:

• What happens if protestors show up?

• What does our security team need to know?

• How do we protect both safety and witness?

You don’t need to live in fear.
But you do need to live prepared.

3. Employment and Difficult Staff Exits

This is where theology and HR collide.

Every church will eventually face a difficult exit, whether due to moral failure, misconduct, substance abuse, fraud, or simply misalignment.

When that happens, the real test isn’t whether something went wrong.
The real test is how leadership responds.

Wise churches:

• Conduct a careful internal review

• Ensure no further harm occurred

• Communicate with clarity (without oversharing protected information)

• Protect both the congregation and the dignity of those involved

When clarity lacks, negativity fills the void.

When communication is wise and steady, trust can survive even hard transitions.

4. Governance and Bylaws

I know. This is where some eyes glaze over.

Until there’s conflict.

Bylaws aren’t exciting… until you need them. Then they’re everything.

They determine:

• Who actually has authority

• How votes happen

• What role members play

• What happens in leadership transitions

• What your church formally believes

Outdated or misaligned bylaws create unnecessary conflict and, in some cases, personal liability for leaders.

This isn’t just a legal issue.
It’s a stewardship issue.

Clear governance protects the mission.

5. AI Policies

Artificial Intelligence is not theoretical anymore. It’s here.

Your staff is likely using it, whether you have a policy or not.

AI can:

• Improve efficiency

• Support research

• Strengthen operations

• Help with data analysis

But without guardrails, it can also:

• Expose confidential information

• Create copyright issues

• Blur authorship lines

• Undermine trust

The question isn’t “Should we use AI?”

The question is “How will we steward it?”

Wise churches are setting:

• Clear usage policies

• Clear data protection boundaries

• Clear expectations around content creation

AI is a tool. It should support your calling, not replace it.

The Bigger Picture

None of these issues are about fear.

They are about stewardship.

Church leaders are entrusted with:

• People

• Mission

• Resources

• Reputation

• Generosity

• Future influence

Legal guardrails are not an expression of distrust.
They are an expression of wisdom.

You don’t install guardrails because you expect to crash.
You install them because you value what you’re protecting.

Want to Go Deeper?

On the LeadingSmart Podcast, Holly sits down with Keith Richardson, our friend, LeadingSmart partner, and attorney with Michael Best’s Faith-Based Practice, one of the leading law firms serving churches nationwide.

They unpack:

• What churches are actually facing right now

• How to think proactively instead of reactively

• Practical steps leaders can take before something goes sideways

If you lead a church, this is worth your time.

Listen to the full conversation here.

And if you’d like help thinking through governance, succession, or structural guardrails in your church, we’d be honored to walk with you. Book a discovery meeting here.